When people hear "estate planning," they often think it's something for older adults or those with significant wealth. Estate planning is for anyone who wants to ensure their wishes are known and their loved ones are cared for, including young adults. Estate planning isn't just about distributing wealth; it's about preparing for life events and ensuring peace of mind for you and your family, regardless of your age or financial status.

Creating an estate plan when you're young can protect you if you're ever unable to make decisions due to an illness or accident. It allows you to outline your healthcare choices and make sure a trusted person can manage your finances or other responsibilities in case you can't. For young adults with children, an estate plan offers additional layers of security by addressing your children's care and establishing a plan to protect their future.

How Estate Planning Protects People of All Ages

Estate planning serves to protect anyone, young or old. For young adults, an estate plan clarifies their wishes, covering financial, medical, and guardianship preferences. Without an estate plan, family members may be forced into difficult positions. For example, they may be placed in a position where they must make a medical decision for you—without knowing what you would have wanted. 

An estate plan also helps avoid court involvement, which can become necessary if decisions need to be made without clear instructions. Having an estate plan in place is especially useful for young parents. By naming a guardian, you can avoid court battles or disagreements over who will care for your children if you can no longer do so. An estate plan clarifies how your assets should be managed, giving you control over how any financial resources are used to benefit your children or other loved ones.

Things You Should Include in Your Plan (Especially If You Have Children)

An estate plan often includes several important documents that are useful for anyone, but especially young adults and parents. Here are things you should be aware of:

• A Will – A will specifies how your assets should be distributed and can name a guardian for any minor children. Without a will, the court decides how to divide your assets, which may not align with your preferences. A will simplifies the legal process and provides clear direction on your wishes.

• Power of Attorney – A financial power of attorney designates someone to handle your finances if you cannot do so. This person could pay bills, manage investments, and make financial decisions, which helps prevent disruptions or financial strain in your absence.

• Living Will – A living will outlines your preferences for medical treatment if you're incapacitated. This document can include instructions on life-sustaining treatments, pain management, and other healthcare choices, letting your family and doctors know your wishes. You can also name a healthcare agent to make decisions on your behalf.

• Beneficiary Designations—Life insurance, retirement accounts, and certain bank accounts allow you to name beneficiaries. Keeping these updated ensures the right people inherit these assets without going through probate. Beneficiary designations can also ensure funds are passed quickly and directly to your loved ones.

• Trusts – Trusts may not be necessary for everyone, but they can offer additional control over how your assets are distributed. A trust lets you set specific terms for when and how assets are accessed. For example, if you have young children, you might want a trust that distributes funds gradually as they reach certain ages. Trusts can also offer privacy and help avoid the probate process, allowing assets to pass directly to the people you choose.

• Letter of Instruction – This document guides your family and executor about important details, like passwords, account information, or instructions for your personal property. A letter of instruction can also include personal messages or directions for your funeral and burial preferences.

• Guardianship Designations—Appointing a guardian is one of the most important decisions a parent can make. A guardianship designation in your will can prevent conflicts and ensure your children are cared for by someone you trust.

With these documents in place, an estate plan can help ensure your family's needs are met and reduce the potential for family disputes or delays in managing your affairs. For young adults, especially those with families, an estate plan provides added security by clearly defining your wishes in case of an emergency.

Build An Estate Plan with Hamilton Law 

Estate planning protects your family and gives clarity to your loved ones. Don't wait to start your estate plan. Schedule a consultation today to take the first step toward securing your future and ensuring peace of mind for you and your family.